SAN DIEGO & FINDLAY, Ohio, June 14, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Cooper Tire & Rubber Company (NYSE: CTB) by Apollo Tyres Ltd (NSE: ApolloTYRE). On June 12, 2013, the companies jointly announced the execution of a definitive merger agreement under which Apollo will acquire Cooper for $35.00 per share in cash.
Is the Acquisition Best for Cooper and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Cooper is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger or whether they are seeking to benefit themselves. Notably, Cooper's current management team will continue to lead the company after the acquisition.
On May 9, 2013, Cooper released financial results for its fiscal 2013 first quarter, announcing record profits for the second consecutive quarter. Specifically, Cooper reported record first quarter operating profit of $97 million, an increase of $49 million compared to the same quarter 2012. Further, net income attributable to Cooper was $0.87 per share, or $56 million, as compared to $0.34 per share, or $22 million, for the same period 2012. In announcing the results, Roy Armes, Cooper's Chairman, Chief Executive Officer, and President, commented, "We carried the momentum of record financial results from 2012 into the first quarter of 2013…. Our long-term focus will remain on executing our strategic plan and continuing to deliver shareholder value across a wide range of conditions."
Given these facts, the firm is examining the board of directors' decision to sell Cooper now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Cooper shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner. Cooper shareholders interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
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SOURCE Robbins Arroyo LLP